Quality Distribution sets add-on term loan at Libor plus 550 bps

By Sara Rosenberg

New York, June 21 – Quality Distribution (Gruden Acquisition Inc.) firmed pricing on its fungible $60 million add-on first-lien term loan (B2) due August 2022 at Libor plus 550 basis points, the high end of the Libor plus 525 bps to 550 bps talk, according to a market source.

Also, the original issue discount on the add-on term loan was revised to 97.5 from 98 and the 101 soft call protection that will apply to the add-on loan as well as to the existing term loan was extended to one year from six months, the source said.

The add-on term loan still has a 1% Libor floor.

Jefferies LLC is the arranger on the deal.

Commitments were scheduled to be due at noon ET on Wednesday, moved up from 3 p.m. ET on Wednesday, the source added.

Proceeds will be used to pay down revolving credit facility borrowings and to pay fees and expenses.

With this transaction, the company will increase pricing on its existing first-lien term loan to Libor plus 550 bps with a 1% Libor floor from Libor plus 475 bps with a 1% Libor floor.

Quality Distribution is a Tampa, Fla.-based operator of a dedicated bulk tank network.

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